Consolidated adjusted EBITDA during the quarter reached $55 million, while year-to-date amounted to $91 million. Adjusted EBITDA marked a 60% year-over-year decline in both periods, reaching $55 million during the quarter and $91 million year-to-date. On the other hand, total production in our farming business reported a 12% year-over-year increase explained by higher planted area, as well as a record productivity in our rice operations. This was due to a selective, slower crushing done in early 2025, focused on cane with limited growth potential and a rainy second quarter that consequently slowed down our crushing phase.
Within our ethanol production, we are maximizing the production of hydrous ethanol, given the better margin. Adjusted EBITDA amounted to $68 million during the second quarter and $98 million for the first half of the year. Finally, to conclude with the sugar, ethanol, and energy business, please turn to slide 10, where we would like to briefly talk about the current outlook. On the demand side, parity at the pump continues to favor ethanol consumption, and new demand has emerged with the implementation of the E30 ethanol mandate.
In rice, our work on seed genetics and the implementation of new technologies resulted in an average yield of 8 tons per hectare, a new record for this business. Adjusted EBITDA for the farming business totaled $1 million during the quarter, whereas year-to-date amounted to $18 million. Starting with our crops segment, the year-over-year decrease in results was mainly driven by an uneven year-over-year comparison, as in April 2024, we sold La Pecuaria farm, which generated $15 million in adjusted EBITDA. Moving on to rice, the decline in adjusted EBITDA during both periods was mostly explained by the outlier prices reported the prior year, coupled with higher costs in U.S.
| Metric | Period | Current guidance |
|---|---|---|
| Annual sugarcane crushing | FY2025 | Reaffirmed in line with 2024 (July crushing >1.5M tons; daily records in August), assuming normal weather |
| Crops leased area | 2025/26 campaign | Reducing leased/planted area by ~30% (about 20,000 hectares) to improve per-hectare margins |
| Net leverage | FY2025 | Expected to end the year around 2x adjusted EBITDA (internal comfort ceiling) |
| Sugar hedging | 2025/2026 | 2025 sugar partly unhedged and 2026 largely open to capture upside; ~5% of 2026 hedged at $0.178/lb |
| Metric | YoY | Note |
|---|---|---|
| Consolidated adjusted EBITDA | US$55M quarter / US$91M YTD (-60%) | Biological-asset and commodity-hedge mark-to-market losses, lower SE&E production and lower crop/rice prices. |
| Sales | US$392M quarter / US$716M YTD | Higher volumes across operations offset by lower prices for most products. |
| SE&E adjusted EBITDA | US$68M quarter / US$98M H1 | Higher sales offset by mark-to-market losses on lower harvested-cane volume and smaller hedge gains. |
| Farming adjusted EBITDA | US$1M quarter / US$18M YTD | Lower crop/rice prices, La Pecuaria sale comparison, higher USD costs; dairy stable. |
| Net debt / leverage | US$699M (+11%); 2.3x | Higher short-term working-capital borrowings amid lower results. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Tether control & governance | Tender offer consummated April 2025 | New board (5 new + 4 existing); supportive of disciplined capital allocation; Bitcoin-mining MOU to monetize ~5% of MS energy | — |
| Weather & the commodity down-cycle | Drought/early-2025 dryness | April rains and a June frost cut milling days and TRS; low commodity prices pressure crops, rice and sugar | — |
| Sugar vs ethanol flexibility | Maximizing sugar in H1 | Switching to ethanol in Mato Grosso do Sul (hydrous parity ~$0.185/lb) given the better margin | — |